BRG.AX breaks above 200-day moving average for the first time since November 13, 2018
Breville Group Limited (BRG.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BRG.AX finished Wednesday at 11.94 surging $0.23 (1.96%), notably outperforming the ASX 200 (-0.25%). Today's close at 11.94 marks the highest recorded closing price since November 13, 2018. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BRG.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.46 (3.87%), that's far above the last trading month's daily average range of $0.28. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BRG.AX.
Three candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
The share managed to close above the 200-day moving average at 11.73 for the first time since November 13, 2018. When this moving average was crossed above the last time on October 29, 2018, BRG.AX gained 2.08% on the following trading day. Unable to break through the key technical resistance level at 12.00 (R1), the stock closed below it after spiking up to 12.20 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Crossing above the upper Bollinger Band for the first time since February 7th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 11.10 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for Breville Group. Out of 23 times, BRG.AX closed higher 52.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.87% with an average market move of 2.84%.